Facebook-led stablecoin project Diem is dismantling itself due to excessive regulatory pressure and is looking for buyers for its assets, according to a report from Bloomberg on Wednesday.
Deem, of which Facebook is one-third owned, has many members and investors, including venture capitalists, tech companies and even government funds.
Some of the key members of the association include:
Andreessen Horowitz, Ribbit Capital, Coin Pieces, Lyft and many more.
Each of the Diem members agreed to invest in the project while they joined the Consortium.
Citing anonymous sources, the report clarified that the project is already under discussion with investment bankers to find a way to sell its intellectual property and transfer engineers to a new project.
For your information, and according to the report, the talks are still in their early stages.
Additionally, it is unclear how potential buyers will evaluate the intellectual property of the stablecoin project.
Some sources even stressed that there is no guarantee that the consortium will successfully find a buyer.
End of an ambitious project:
Facebook and its partners launched an ambitious cryptocurrency project called Libra in mid-2019 and were planning to launch it within a year.
But harsh scrutiny and regulation around the world aborted the project, as authorities were concerned about the impact of the private digital currency on a massive platform like Facebook.
Even Facebook CEO Mark Zuckerberg was forced to testify and defend the project before the United States Congress.
The consortium then renamed the project to Diem and made architectural changes to the stablecoin to avoid some regulatory tension.
The consortium plans to launch a stablecoin pegged to the US dollar with Silver Gate Bank as its partner.
But these efforts were canceled because banking regulators were not comfortable allowing the lender to participate in such a venture.
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